Share-Based Compensation

9 Months Ended

Mar. 31, 2022

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

Note 7. Share-Based Compensation

The Company’s share-based compensation plans are described in Note 8 to the financial statements included in the Company’s Annual Report on Form 10-K for fiscal 2021. Share-based compensation expense was $703,000 and $756,000 for the nine months ended March 31, 2022 and 2021, respectively. This expense is included in selling, general and administrative expense in the Condensed Statements of Operations.

Stock Options

Stock option transactions during the nine months ended March 31, 2022 are summarized as follows:

	Number of Shares			Weighted Average Exercise Price per Share
Outstanding at June 30, 2021		468,049		$	4.98
Granted		81,326		$	11.52
Exercised		(28,667	)	$	5.45
Cancelled or Forfeited		(15,866	)	$	11.30
Outstanding at March 31, 2022		504,842		$	5.81

The following assumptions were used to estimate the fair value of stock options granted:

	Nine Months Ended March 31, 2022		Fiscal Year Ended June 30, 2021
Risk-free interest rate		0.89 - 1.93%		0.31 - 0.59%
Expected term (years)		6		6
Expected volatility		56 - 64%		283 - 335%

The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. At March 31, 2022, the weighted average remaining contractual term for all outstanding stock options was 5.6 years and the aggregate intrinsic value of the options was $3,437,000. Outstanding at March 31, 2022 were 504,842 stock options issued to employees, of which 380,881 were vested and exercisable and had an aggregate intrinsic value of $3,195,500. As of March 31, 2022, $364,900 of total unrecognized compensation expense related to stock options is expected to be recognized over a weighted-average period of approximately 2.2 years.

Restricted Stock

During the nine months ended March 31, 2022, the Company issued restricted stock awards to employees totaling 25,900 shares of common stock, with a vesting term of three years and a weighted average fair value of $11.35 per share, and to directors totaling 18,000 shares of common stock, with a vesting term of six months and a weighted average fair value of $12.09 per share. As of March 31, 2022, there were 69,403 shares of unvested restricted stock with a weighted average fair value of $11.87 per share outstanding . As of March 31, 2022, $364,000 of total unrecognized compensation expense related to restricted stock awards is expected to be recognized over a weighted-average period of approximately 1.4 years.